Shares of Hecla Mining dropped after the company said a fall of ground at its Lucky Friday mine in Idaho is expected to hit production and costs.
The stock was down 8.6% to $4.18 in morning trading. Over the past 12 months, shares are still up almost 3%.
The Coeur d’Alene, Idaho, company, which mines silver and other precious metals, said the collapse occurred in the Lucky Friday mine’s #2 shaft, a secondary egress, at an unused station that was under repair. The company said it is investigating the incident, but that the failure appears to have been caused by a fire, which Hecla Mining said is contained and under control.
Hecla Mining says it produces more than 45% of all silver in the U.S. The company operates four mines. Lucky Friday is a deep underground silver, lead and zinc mine that is entirely owned by Hecla Mining.
Hecla Mining said no personnel were in the mine at the time of failure, and that it is working on a plan to resume production and will update its annual guidance once the plan is developed. The Mine Safety and Health Administration has been notified. The collapse occurred about 500 feet from the bottom of the active portion of the shaft.